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Lattice Semiconductor (LSCC) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Lattice Semiconductor (LSCC) closed at $19.38 in the latest trading session, marking a -1.87% move from the prior day. This change lagged the S&P 500's 0.2% loss on the day. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Heading into today, shares of the chipmaker had lost 6.66% over the past month, lagging the Computer and Technology sector's gain of 0.91% and the S&P 500's loss of 0.25% in that time.

Wall Street will be looking for positivity from LSCC as it approaches its next earnings report date. This is expected to be October 29, 2019. In that report, analysts expect LSCC to post earnings of $0.15 per share. This would mark year-over-year growth of 36.36%. Meanwhile, our latest consensus estimate is calling for revenue of $103 million, up 1.5% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.57 per share and revenue of $407.89 million. These totals would mark changes of +72.73% and +2.28%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for LSCC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LSCC currently has a Zacks Rank of #3 (Hold).

Digging into valuation, LSCC currently has a Forward P/E ratio of 34.8. For comparison, its industry has an average Forward P/E of 19.8, which means LSCC is trading at a premium to the group.

Also, we should mention that LSCC has a PEG ratio of 2.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LSCC's industry had an average PEG ratio of 2.12 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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